Goldman is the real "Federal Bank". Bernanke is just a bald joker who is sitting there as a puppet, clueless.
Its Goldman that runs the money in America and they "know" it. So when they went from "expect rate cuts in 2007/2008" to "we are eating crow - we now expect rate hikes in 2007/2008" yesterday, THAT MARKED A DRAMATIC CHANGE IN THE MONEY WORLD. The biggest of all things, bigger than Greenspan warnings, bigger than China Bank attempts to control stock gambling, bigger than Iran, bigger than anything else.
Goldman is the MONEY GOD. When they say, rate hikes coming, please get out, no RUN OUT TO THE EXITS from your investment homes, 2nd/3rd homes, all your stock investments (other than long term holdings).
You will see house prices COLLAPSE in the next few days (I say DAYS, not weeks or months, DAYS).
Follow the MONEY GOD if you wanna be rich. Follow Goldman.
I have 230 PUT contracts on home builders and mortgage lenders. I viewed this as insurance against the long portion of my portfolio. Over the last 6 weeks, I have been winning on the long part of my portfolio and breaking even on my puts. Over the last few days, the PUTS are really starting to kick in huge profits even though my long part of the portfolio is still pretty healthy.
I love insurance that pays off even before a disaster.
I would never be naked short in this crazy market, but being short HBs and MBs is a great hedge strategy when the market is so overheated.